As of April 30, 2016

Month Ended April 30, 2016

Investing in mid-cap stocks is riskier and more volatile than investing in large-cap stocks. The intrinsic value of the stocks in
which the Fund invests may never be recognized by the broader market. Ariel Appreciation Fund often invests a significant
portion of its assets in companies within the financial services and consumer discretionary sectors and its performance may
suffer if these sectors underperform the overall stock market.
Performance data quoted represents past performance. Past performance does not guarantee future results. All performance
assumes the reinvestment of dividends and capital gains, and represents returns of the Investor Class shares. The investment
return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more
or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the
period ended March 31, 2016, the average annual total returns of Ariel Appreciation Fund (Investor Class) for the 1-, 5- and
10-year periods were -9.14%, +9.15% and +7.48%, respectively. The Funds Investor Class shares had an annual expense
ratio of 1.12% for the year ended September 30, 2015. Performance data current to the most recent month-end for Ariel
Appreciation Fund may be obtained by visiting our website, arielinvestments.com.
In spring 2015 we delved deep into the decisions that drove Ariel Funds strong six-year performance streak; this year we will
examine Ariel Appreciation Fund. This analysis leans upon K. J. Martijn Cremers Patient Capital Outperformance: The Investment
Skill of High Active Share Managers Who Trade Infrequently, which explains how being highly active and holding stocks long term
often produces outperformance. As a firm, we wholeheartedly believe independent thinking and patience drive strong performance,
and Cremers has put data to those principles.
We will start at the endpointwith results. In the current era, which dates back to the end of the Great Financial Crisis on March 9,
2009 (the market bottom), Ariel Appreciation Fund has had remarkable performance. Its returns have been outstanding for the
seven-plus years since that date, plus you can break the period (essentially) in half and see that the Fund excelled in both halves.
Specifically, of the 297 funds in Morningstars Mid-Cap Blend Category dating back to the market bottom, Ariel Appreciation Funds
+23.96% annualized return ranks 10thputting it in the top 3% of the category as of April 30, 20161. And from March 9, 2009
through December 31, 2012, it gained an annualized +33.22%, which ranked 18th, putting it in the top 6% of the category. It has
done similarly well in the second half of the overall period, gaining +14.11% per year between January 1, 2013 and April 30,
2016a top 8% ranking, as the 25th highest returning fund in its cohort.
As we noted last year, long holding periods do not equate to buy and hold, acquiring shares in a stock and letting them ride until
liquidation years later. So while Cremers work does show that many professional investors trade too much, we think being
sensitive and reactive to valuation is important. To quote our commentary last year: Turnover can be too high or too low, with the
optimal amount being somewhere in the middle. Below are two key measures of portfolio turnover for each calendar year during
that streak:

Past performance and does not guarantee future results. Morningstar, Inc. is a nationally recognized organization that
reports performance and calculates rankings for mutual funds. Rankings are based on total returns. Morningstar ranks each
fund relative to all funds in the same category. For the period ended April 30, 2016, the rankings of Ariel Appreciation Fund
for the 1-, 5-, 10-year, and since inception (November 6, 1986) periods were 280 out of 412 funds, 39 out of 320 funds, 24
out of 216 funds, and 4 out of 17 funds, respectively, among Morningstar Mid-Cap Blend funds.
1

As of April 30, 2016

2009

2010

2011

2012

2013

2014

2015

Asset turnover

48%

29%

30%

27%

24%

25%

19%

Name turnover

8%

8%

21%

10%

5%

10%

7%

Asset turnover assesses changes in dollars: total buys or sells in dollars (whichever was lower), divided by average assets in the
portfolio. It describes how much you trade, regardless of what you trade. Name turnover measures stocks added to the portfolio
and omitted from it, regardless of dollar amounts. As above, asset turnover for Ariel Appreciation Fund is, on average, about triple
the name turnover for the portfolio in the period examined. That means we trade the stocks in our portfolio actively, often our
best- and worst-performing stocks.
Below we show those stocks that most contributed to, and detracted from, performance along with a summary of our activity over
the two halves of the 2009-2016 period.
Top Contributing Stocks Ariel Appreciation Fund March 2009 to April 2016
2009 Share
Count

% Change
Share Count 2012 Share
2009-2012 Count

% Change
Share Count 2015 Share
2012-2015 Count

Rank

Ticker

Name

CBS

CBS Corp.

6,766,300

-86%

956,900

-15%

810,600

TGNA

TEGNA, Inc.

6,984,675

-77%

1,605,200

-44%

899,500

CBG

CBRE Group, Inc.

7,025,700

-84%

1,145,950

-63%

423,250

JLL

JLL

1,103,600

-54%

512,400

-47%

271,600

AFL

AFLAC Inc.

1,099,400

-29%

780,200

58%

1,231,900

JNS

Janus Capital Group Inc.

4,517,000

-3%

4,362,775

-100%

SOLD

IPG

Interpublic Group of Cos., Inc.

7,178,875

-30%

5,042,530

-45%

2,779,430

IGT

International Game Technology

2,985,100

-8%

2,732,990

-100%

SOLD

TIF

Tiffany & Co.

1,292,700

-82%

231,200

4%

241,400

10

BEN

Franklin Resources, Inc.

1,441,200

-39%

886,200

41%

1,248,300

As of April 30, 2016

Bottom Contributing Stocks Ariel Appreciation Fund March 2009 to April 2016
2009 Share
Count

% Change
Share Count 2012 Share
2009-2012 Count

% Change
Share Count 2015 Share
2012-2015 Count

Rank

Ticker

Name

BRS

Bristow Group Inc.

--

--

--

NEW

2,426,964

CHK

Chesapeake Energy Corp.

--

--

--

--

SOLD

DV

DeVry Education Group Inc.

--

NEW

829,335

-100%

SOLD

KMT

Kennametal Inc.

--

--

--

NEW

3,197,100

MCF

Contango Oil & Gas Co.

--

NEW

586,482

-64%

208,938

NOV

National Oilwell Varco

--

--

--

NEW

1,036,100

COH

Coach, Inc.

--

--

--

--

SOLD

MSG

The Madison Square Garden Co.

--

--

--

NEW

33,466

GCI

Gannett Co. Inc.

--

--

--

--

SOLD

10

WLTW

Willis Towers Watson plc

--

--

--

NEW

223,600

Stocks we no longer own are in grey. As you can see, we liquidated two top stocks and four bottom stocks, suggesting we often
eliminate ideas that are not working and hold onto those that are. Indeed, because International Game Technology was acquired,
we only actively decided to sell Janus Capital Group Inc. That said, the table makes clear we do not simply let winners run
without trimming positions: we sold down six of the top-ten returning stocks by 60% or more, trimmed another by about 10%, and
bought more of the final stock between 2009 and today. Its also interesting that of the worst performers, we owned none in 2009
and only owned two in 2012. In other words, these poor performers are contrarian picks that have yet to turn around. Of the stocks
we sold, one was a spin-offGannett Co. Inc., and a few of them were not in the portfolio very long at all; we realized they were
mistakes and sold.
Taken altogether one cannot simply think independently, buy good values, and watch them work. We think good active
management often means paring back on holdings that have performed very well, which many find difficult to do. On the flip side,
one must also differentiate between falling stocks that need more time to work and those that are mistakes. We strive to distinguish
the two by looking at values rather than trailing returns and by holding onto stocks that seem to have bright futures and attractive
current prices.

The opinions expressed are current as of the date of this commentary but are subject to change. The details offered in this
commentary do not provide information reasonably sufficient upon which to base an investment decision and should not be
considered a recommendation to purchase or sell any particular security. Investing involves risk.
Investing in equity stocks is risky and subject to the volatility of the markets. Investing in small and mid-cap stocks is more risky and
volatile than investing in large-cap stocks. Ariel Appreciation Fund often invests a significant portion of its assets in companies
within the financial services and consumer discretionary sectors and their performance may suffer if these sectors underperform the
overall stock market. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market.

As of April 30, 2016

As of 3/31/16, CBS Corp. constituted 2.7% of Ariel Appreciation Fund; TEGNA, Inc. 1.2%; CBRE Group, Inc. 0.7%; JLL 1.8%; AFLAC
Inc. 4.4%; Janus Capital Group Inc. 0.0%; Interpublic Group of Cos., Inc. 3.7%; International Game Technology 0.0%; Tiffany & Co.
1.0%; Franklin Resources, Inc. 2.8%; Bristow Group Inc. 2.6%; Chesapeake Energy Corp. 0.0%; DeVry Education Group Inc. 0.0%;
Kennametal Inc. 4.1%; Contango Oil & Gas Co. 0.4%; National Oilwell Varco 1.8%; Coach, Inc. 0.0%; The Madison Square Garden
Co. 0.3%; Gannett Co., Inc. 0.0%; and Willis Towers Watson plc 1.4%. Portfolio holdings are subject to change. The performance
of any single portfolio holding is no indication of the performance of other portfolio holdings of Ariel Appreciation Fund.
Morningstar rankings: 2015 Morningstar, Inc. All Rights Reserved. The ranking information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this
information.

Investors should consider carefully the investment objectives, risks, and charges and expenses before investing. For a current
summary prospectus or full prospectus which contains this and other information about the funds offered by Ariel Investment Trust,
call us at 800-292-7435 or visit arielinvestments.com. Please read the summary prospectus or full prospectus carefully before
investing. Distributed by Ariel Distributors, LLC, a wholly-owned subsidiary of Ariel Investments, LLC.